Question

Why is it important for Leslie, who manages a medical supply company, to create a budget? Check all that apply.

A budget helps her plan how much to order without running out of money.
A budget helps her plan how many workers she can afford to pay.
A budget helps her supervise her employees’ social etiquette at office parties.
A budget helps her allocate a specific amount of money for pursuing other company goals.

Answer 1

Correct choices: 1, 2, and 4.

- A budget helps plan how much to order and manage cash so she won’t run out of money.
- A budget helps determine how many workers she can afford by accounting for payroll costs.
- A budget lets her allocate specific funds for other company goals (investment, marketing, equipment, etc.).

Option 3 is not correct — supervising employees’ social etiquette isn’t a budgeting function.